Newmont Attributable Gold Production To Increase In 2016
“Our 2016 outlook reflects ongoing performance, portfolio and balance sheet improvements. We expect to keep our all-in sustaining costs below $1,000 per ounce and maintain profitable production of between 4.5 and five million ounces of gold per year over the next five years,” said Gary Goldberg, President and Chief Executive Officer. “Our focus remains on delivering industry-leading returns on capital and improved value to our shareholders. Higher margin ounces will be added with the completion of Merian, Long Canyon and expansions at Cripple Creek & Victor and Tanami. We will also progress the next projects in our pipeline – including expansions at Carlin and Ahafo – to further improve profitability.” Operating and financial outlook Attributable gold production is expected to increase from between 4.8 and 5.3 million ounces in 2016 to between 5.2 and 5.7 million ounces in 2017, and remain stable at between 4.5 and 5.0 million ounces through 2020. New production at CC&V, Long Canyon Phase 1, Merian and Tanami Expansion help offset maturing operations at Yanacocha and mine sequencing at Batu Hijau. The ramp-up of projects that are not yet approved, including Ahafo Mill Expansion, Subika Underground and NW Exodus represent upside of between 250,000 and 400,000 ounces of gold production beginning in 2018.
North America production is expected to increase from between 1.9 and 2.1 million ounces in 2016 to between 2.1 and 2.3 million ounces in 2017, and return to 2016 levels by 2018. New production from CC&V and higher grades at Leeville related to the Turf Vent Shaft help offset lower production at Twin Creeks due to planned processing of lower grade stockpiles, as well as a slowdown in the development rate at Leeville due to the installation of long term ground support. NW Exodus at Carlin represents additional upside currently not captured in guidance. South America production is expected to increase from between 400,000 and 450,000 ounces in 2016 to between 600,000 and 700,000 ounces in 2017 and 2018. Lower cost production at Merian is expected to offset the impact of maturing operations at Yanacocha. Asia Pacific production is expected to improve from between 1.7 and 1.9 million ounces in 2016 to between 1.8 and 2.0 million ounces in 2017, before decreasing to between 1.4 and 1.7 million ounces in 2018. 2016 and 2017 benefit from higher grades at Batu Hijau and the addition of the Tanami Expansion project in 2017, with 2018 lower due to mine sequencing at Batu HijauAfrica production is expected to decline from between 760,000 and 820,000 ounces in 2016 to between 700,000 and 800,000 ounces in 2017 and between 650,000 and 750,000 ounces in 2018 due primarily to lower grades at Ahafo and Akyem. Ahafo Mill Expansion and Subika Underground represent additional upside currently not captured in guidance, and if approved, would increase 2018 production to 2016 and 2017 levels.